UPSC Editorials Quiz : 4 November 2025

Introducing QUED – Questions from Editorials (UPSC Editorials Quiz) , an innovative initiative from InsightsIAS. Considering the significant number of questions in previous UPSC Prelims from editorials, practicing MCQs from this perspective can provide an extra edge. While we cover important editorials separately in our Editorial Section and SECURE Initiative, adding QUED (UPSC Editorials Quiz) to your daily MCQ practice alongside Static Quiz, Current Affairs Quiz, and InstaDART can be crucial for better performance. We recommend utilizing this initiative to enhance your preparation, with 5 MCQs posted daily at 11 am from Monday to Saturday on our website under the QUIZ menu.

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• Question 1 of 5 1. Question Consider the following statements regarding the relationship between inflation, interest rates, and monetary transmission: 1. When inflation falls sharply, real interest rates increase if nominal policy rates remain unchanged. 2. Lower inflation improves monetary transmission by reducing lending rate rigidity in banks. 3. A sharp fall in inflation always indicates weak aggregate demand in the economy. How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Statement 1 is correct. When inflation falls sharply but the nominal policy rate (say, repo rate) remains the same, the real interest rate (nominal rate minus inflation rate) rises. This is because real rates depend on the inflation-adjusted value of the nominal rate. A higher real rate increases the cost of borrowing and can have a tightening effect on monetary conditions even if the central bank has not changed its policy rate. Statement 2 is correct. Lower inflation enhances the transmission of monetary policy through the banking system. When inflation expectations stabilize, banks face less uncertainty in setting lending and deposit rates. It reduces the stickiness (rigidity) of lending rates, as real returns on loans and deposits become more predictable, improving the responsiveness of lending rates to policy rate changes. Statement 3 is incorrect. A fall in inflation does not always signal weak aggregate demand. Inflation may fall due to multiple factors, such as favorable supply-side developments (like lower commodity prices, improved productivity, or better harvests) or base effects, rather than demand contraction. Therefore, it cannot be generalized that every disinflation episode reflects weak demand. Incorrect Solution: B Statement 1 is correct. When inflation falls sharply but the nominal policy rate (say, repo rate) remains the same, the real interest rate (nominal rate minus inflation rate) rises. This is because real rates depend on the inflation-adjusted value of the nominal rate. A higher real rate increases the cost of borrowing and can have a tightening effect on monetary conditions even if the central bank has not changed its policy rate. Statement 2 is correct. Lower inflation enhances the transmission of monetary policy through the banking system. When inflation expectations stabilize, banks face less uncertainty in setting lending and deposit rates. It reduces the stickiness (rigidity) of lending rates, as real returns on loans and deposits become more predictable, improving the responsiveness of lending rates to policy rate changes. Statement 3 is incorrect. A fall in inflation does not always signal weak aggregate demand. Inflation may fall due to multiple factors, such as favorable supply-side developments (like lower commodity prices, improved productivity, or better harvests) or base effects, rather than demand contraction. Therefore, it cannot be generalized that every disinflation episode reflects weak demand.

#### 1. Question

Consider the following statements regarding the relationship between inflation, interest rates, and monetary transmission:

1.When inflation falls sharply, real interest rates increase if nominal policy rates remain unchanged. 2. Lower inflation improves monetary transmission by reducing lending rate rigidity in banks. 3. A sharp fall in inflation always indicates weak aggregate demand in the economy.

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

• Statement 1 is correct. When inflation falls sharply but the nominal policy rate (say, repo rate) remains the same, the real interest rate (nominal rate minus inflation rate) rises. This is because real rates depend on the inflation-adjusted value of the nominal rate. A higher real rate increases the cost of borrowing and can have a tightening effect on monetary conditions even if the central bank has not changed its policy rate.

• Statement 2 is correct. Lower inflation enhances the transmission of monetary policy through the banking system. When inflation expectations stabilize, banks face less uncertainty in setting lending and deposit rates. It reduces the stickiness (rigidity) of lending rates, as real returns on loans and deposits become more predictable, improving the responsiveness of lending rates to policy rate changes.

• Statement 3 is incorrect. A fall in inflation does not always signal weak aggregate demand. Inflation may fall due to multiple factors, such as favorable supply-side developments (like lower commodity prices, improved productivity, or better harvests) or base effects, rather than demand contraction. Therefore, it cannot be generalized that every disinflation episode reflects weak demand.

Solution: B

• Question 2 of 5 2. Question Which of the following regions contributes the largest share to recent global deforestation according to major assessments? a) Boreal forests of Canada and Russia b) Temperate forests of Europe c) Humid tropical forests in South America, Africa and Southeast Asia d) Coniferous forests of North America Correct Solution: C Most recent global assessments, including the Forest Declaration 2025 and FAO State of the World’s Forests, show that humid tropical forests—particularly in the Amazon Basin, Congo Basin, and Southeast Asia—account for the bulk of current forest loss. Drivers include commercial agriculture, cattle ranching, and plantation crops. Boreal and temperate forests are experiencing degradation but not comparable loss in extent. Incorrect Solution: C Most recent global assessments, including the Forest Declaration 2025 and FAO State of the World’s Forests, show that humid tropical forests—particularly in the Amazon Basin, Congo Basin, and Southeast Asia—account for the bulk of current forest loss. Drivers include commercial agriculture, cattle ranching, and plantation crops. Boreal and temperate forests are experiencing degradation but not comparable loss in extent.

#### 2. Question

Which of the following regions contributes the largest share to recent global deforestation according to major assessments?

• a) Boreal forests of Canada and Russia

• b) Temperate forests of Europe

• c) Humid tropical forests in South America, Africa and Southeast Asia

• d) Coniferous forests of North America

Solution: C

Most recent global assessments, including the Forest Declaration 2025 and FAO State of the World’s Forests, show that humid tropical forests—particularly in the Amazon Basin, Congo Basin, and Southeast Asia—account for the bulk of current forest loss. Drivers include commercial agriculture, cattle ranching, and plantation crops. Boreal and temperate forests are experiencing degradation but not comparable loss in extent.

Solution: C

• Question 3 of 5 3. Question With reference to the European Union’s Carbon Border Adjustment Mechanism (CBAM), consider the following statements: It is a climate-trade instrument designed to prevent “carbon leakage.” The mechanism applies initially to sectors such as cement, steel, aluminium, fertilizers, and electricity. It is administered under the framework of the Paris Agreement’s Article 6 on carbon markets. Which of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B Statements 1 and 2 are correct. CBAM is an EU climate policy tool intended to prevent “carbon leakage” — the relocation of industries to regions with weaker emission norms — by imposing a carbon cost on imported products based on their embedded emissions. Initially, it covers sectors such as iron and steel, aluminium, cement, fertilizers, hydrogen, and electricity. Statement 3 is incorrect: CBAM is an independent EU policy mechanism; it is not directly governed by Article 6 of the Paris Agreement, which deals with voluntary cooperation and carbon credit transfers between countries. However, CBAM’s global impact aligns with Article 6’s objective of integrating markets and promoting transparent carbon accounting. Its enforcement falls under EU law, not the UN climate regime, making it a unilateral but WTO-defensible measure. Incorrect Solution: B Statements 1 and 2 are correct. CBAM is an EU climate policy tool intended to prevent “carbon leakage” — the relocation of industries to regions with weaker emission norms — by imposing a carbon cost on imported products based on their embedded emissions. Initially, it covers sectors such as iron and steel, aluminium, cement, fertilizers, hydrogen, and electricity. Statement 3 is incorrect: CBAM is an independent EU policy mechanism; it is not directly governed by Article 6 of the Paris Agreement, which deals with voluntary cooperation and carbon credit transfers between countries. However, CBAM’s global impact aligns with Article 6’s objective of integrating markets and promoting transparent carbon accounting. Its enforcement falls under EU law, not the UN climate regime, making it a unilateral but WTO-defensible measure.

#### 3. Question

With reference to the European Union’s Carbon Border Adjustment Mechanism (CBAM), consider the following statements:

• It is a climate-trade instrument designed to prevent “carbon leakage.”

• The mechanism applies initially to sectors such as cement, steel, aluminium, fertilizers, and electricity.

• It is administered under the framework of the Paris Agreement’s Article 6 on carbon markets.

Which of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

Statements 1 and 2 are correct. CBAM is an EU climate policy tool intended to prevent “carbon leakage” — the relocation of industries to regions with weaker emission norms — by imposing a carbon cost on imported products based on their embedded emissions. Initially, it covers sectors such as iron and steel, aluminium, cement, fertilizers, hydrogen, and electricity.

Statement 3 is incorrect: CBAM is an independent EU policy mechanism; it is not directly governed by Article 6 of the Paris Agreement, which deals with voluntary cooperation and carbon credit transfers between countries. However, CBAM’s global impact aligns with Article 6’s objective of integrating markets and promoting transparent carbon accounting. Its enforcement falls under EU law, not the UN climate regime, making it a unilateral but WTO-defensible measure.

Solution: B

• Question 4 of 5 4. Question Consider the following activities: Development of stem cells into functional embryos. Genetic modification of sperm-producing cells. Prevention of mitochondrial diseases in offspring. Fertilization of an egg in vitro by a donor sperm. Pronuclear Transfer, a technique sometimes mentioned in news, is used for which of the above? (a) 1 and 2 (b) 2 and 3 (c) 3 only (d) 4 only Correct Solution: C Pronuclear Transfer is a form of Mitochondrial Replacement Therapy (MRT). Its primary purpose is to prevent the transmission of mitochondrial diseases from a mother to her child. The technique involves transferring the nuclear DNA from a fertilized egg (which contains the genetic material from both parents but has faulty mitochondria from the mother) into a donor egg that has healthy mitochondria but has had its own nuclear DNA removed. The resulting embryo has nuclear DNA from the intended parents and healthy mitochondria from the donor. Therefore, its use is for the prevention of mitochondrial diseases in offspring. The other options describe different biotechnologies like cloning, germline gene editing, or standard IVF, which are distinct from Pronuclear Transfer. Incorrect Solution: C Pronuclear Transfer is a form of Mitochondrial Replacement Therapy (MRT). Its primary purpose is to prevent the transmission of mitochondrial diseases from a mother to her child. The technique involves transferring the nuclear DNA from a fertilized egg (which contains the genetic material from both parents but has faulty mitochondria from the mother) into a donor egg that has healthy mitochondria but has had its own nuclear DNA removed. The resulting embryo has nuclear DNA from the intended parents and healthy mitochondria from the donor. Therefore, its use is for the prevention of mitochondrial diseases in offspring. The other options describe different biotechnologies like cloning, germline gene editing, or standard IVF, which are distinct from Pronuclear Transfer.

#### 4. Question

Consider the following activities:

• Development of stem cells into functional embryos.

• Genetic modification of sperm-producing cells.

• Prevention of mitochondrial diseases in offspring.

• Fertilization of an egg in vitro by a donor sperm.

Pronuclear Transfer, a technique sometimes mentioned in news, is used for which of the above?

• (a) 1 and 2

• (b) 2 and 3

• (c) 3 only

• (d) 4 only

Solution: C

Pronuclear Transfer is a form of Mitochondrial Replacement Therapy (MRT). Its primary purpose is to prevent the transmission of mitochondrial diseases from a mother to her child. The technique involves transferring the nuclear DNA from a fertilized egg (which contains the genetic material from both parents but has faulty mitochondria from the mother) into a donor egg that has healthy mitochondria but has had its own nuclear DNA removed. The resulting embryo has nuclear DNA from the intended parents and healthy mitochondria from the donor. Therefore, its use is for the prevention of mitochondrial diseases in offspring. The other options describe different biotechnologies like cloning, germline gene editing, or standard IVF, which are distinct from Pronuclear Transfer.

Solution: C

• Question 5 of 5 5. Question With reference to the Coalition for Disaster Resilient Infrastructure (CDRI), consider the following statements: It was co-launched by India and France after the Paris Agreement. It seeks to enhance resilience of infrastructure systems to climate and disaster risks. It operates as an initiative under the UN Office for Disaster Risk Reduction (UNDRR). How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None Correct Solution: B The Coalition for Disaster Resilient Infrastructure (CDRI) was launched by India in partnership with several nations, including France and the UK, in 2019 (post-Paris era). It aims to promote resilience of infrastructure systems against disasters and climate-related risks through shared standards, data, and capacity building. It functions as a multi-stakeholder platform and is not directly under UNDRR. Therefore, statements 1 and 2 are correct, while 3 is incorrect. Incorrect Solution: B The Coalition for Disaster Resilient Infrastructure (CDRI) was launched by India in partnership with several nations, including France and the UK, in 2019 (post-Paris era). It aims to promote resilience of infrastructure systems against disasters and climate-related risks through shared standards, data, and capacity building. It functions as a multi-stakeholder platform and is not directly under UNDRR. Therefore, statements 1 and 2 are correct, while 3 is incorrect.

#### 5. Question

With reference to the Coalition for Disaster Resilient Infrastructure (CDRI), consider the following statements:

• It was co-launched by India and France after the Paris Agreement.

• It seeks to enhance resilience of infrastructure systems to climate and disaster risks.

• It operates as an initiative under the UN Office for Disaster Risk Reduction (UNDRR).

How many of the above statements are correct?

• (a) Only one

• (b) Only two

• (c) All three

Solution: B

The Coalition for Disaster Resilient Infrastructure (CDRI) was launched by India in partnership with several nations, including France and the UK, in 2019 (post-Paris era). It aims to promote resilience of infrastructure systems against disasters and climate-related risks through shared standards, data, and capacity building. It functions as a multi-stakeholder platform and is not directly under UNDRR. Therefore, statements 1 and 2 are correct, while 3 is incorrect.

Solution: B

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